Christmas 2012: Desperate stores slash prices again as shoppers shun the high street

Desperate stores slash prices again as shoppers shun the high streetMany retailers make more than 40 per
cent of sales and profits in the run-up to ChristmasBut they are faced
with a slump in the numbers coming through their doorsThe figure is down by 5.7 per cent in
out-of-town malls, 5.5 per cent in shopping centres and 2.1 per cent on
the high street

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UPDATED:

23:27 GMT, 19 December 2012

Desperate retailers are slashing prices as shoppers shun stores, with numbers down by up to 5 per cent compared to last year.

Many retailers make more than 40 per cent of sales and profits in the run-up to Christmas, but they are faced with a slump in the numbers coming through their doors.

The figure is down by 5.7 per cent in out-of-town malls, 5.5 per cent in shopping centres and 2.1 per cent on the high street, according to the British Retail Consortium.

Desperate: Retailers are slashing prices as shoppers shun stores, with numbers down by up to 5 per cent compared to last year. This picture shows Oxford Street in London

Shopper numbers in London and the South East are down by more than 7 per cent compared to a year ago.

The gloomy picture was confirmed by two further studies published yesterday by the Confederation of British Industry and market researchers Ipsos.

The rising cost of living, which is being driven by higher food and energy prices, has seen many families opt for an austerity Christmas while some shoppers are leaving purchases until the last minute in the hope that prices will fall.

Since last weekend deep reductions of up to 60 per cent have been offered by chains including Gap and H&M.

Sales: Since last weekend deep reductions of up to 60 per cent have been offered by chains including Gap and H&M

However retailers are making up some of the fall in takings through internet sales.

The BRC said combined visitor numbers across all locations shows a fall of 2.6 per cent in the second week of December.

Its figures have been confirmed by a second study compiled by Ipsos for the third week in December.

Ipsos president Peter Luff, said: ‘It’s an interesting scenario and somewhat of a stand-off between shoppers and retailers.

‘It could be that consumers are simply holding out for even greater discounts and bargains, or they may be holding onto their money with a view to spending immediately after Christmas or in the New Year.’

BRC director general, Helen Dickinson, said she believes some shoppers have switched to the web while others are putting off purchasing until later this week. ‘At first glance the year-on-year fall in shopper numbers doesn’t look great but there are several factors at play,’ she said.

‘Online shopping will be more important this Christmas than ever before and with Christmas falling on a Tuesday many of us feel we have a few more days to finalise our festive shopping.’